SATS Ltd · SGX:S58
SATS — 3Q FY2015/16 Earnings Presentation
19 slides from SATS's earnings presentation, Feb 12, 2016
Slide 1: 3Q and 9M15/16 Performance Review
3Q and 9M15/16 Performance Review 12 February 2016
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain forward-looking statements regarding, among other things, the Company's outlook, business and strategy which are current as of the date they are made. These forward-looking statements are based largely on the current assumptions, expectations
Slide 3: Agenda
Agenda • Executive Summary • Operating Statistics • Group Financial Review • Outlook 3
Slide 4: Executive Summary: 3Q15/16 Performance
Executive Summary: 3Q15/16 Performance • Group revenue declined 2.2% due to lower Food Solutions’ revenue mainly attributed to the transfer of the food distribution business to SATS BRF Food, partially offset by higher Gateway Services’ revenue • Operating margins expanded 2.7 percentage points to 1
Slide 5: Operating Statistics
Operating Statistics 5
Slide 6: Operating Statistics for Singapore Aviation Business
Operating Statistics for Singapore Aviation Business Change Change 3Q15/16 3Q14/15 (%) 9M15/16 9M14/15 (%) Passengers Handled ('M) 11.82 10.43 13.3 33.16 31.93 3.9 Flights Handled ('000) 34.92 31.23 11.8 98.36 96.73 1.7 Unit Services Handled ('000) 30.19 27.45 10.0 86.49 83.73 3.3 Cargo/Mail Process
Slide 7: Group Financial Review
Group Financial Review 7
Slide 8: 3Q15/16 Highlights
3Q15/16 Highlights Revenue • Decline in Food Solutions’ revenue (-7.1%) was partially mitigated by growth in Gateway Services’ revenue (+5.3%). $441.0M -2.2% Operating profit • Lower expenditure (-5.1%) contributed to improved operating profit. Reductions reported across all expense categories excep
Slide 9: 9M15/16 Highlights
9M15/16 Highlights Revenue • Revenue declined 3.6%. Lower Food Solutions’ revenue (-8.2%) was partially offset by higher Gateway Services’ revenue $1,280.6M -3.6% (+3.5%). Operating profit • Operating profit increased 23.8% due to a decrease in operating expenses. $165.0M 23.8% Share of results of •
Slide 10: 3Q and 9M15/16 Financials
3Q and 9M15/16 Financials Favourable/ Favourable/ $M 3Q15/16 3Q14/15 (Unfavourable) 9M15/16 9M14/15 (Unfavourable) Change (%) Change (%) Revenue 441.0 450.7 (2.2) 1,280.6 1,328.1 (3.6) Expenditure (379.2) (399.6) 5.1 (1,115.6) (1,194.8) 6.6 Operating Profit 61.8 51.1 20.9 165.0 133.3 23.8 EBITDA 79.
Slide 11: Financial Indicators
Financial Indicators Change Change % 3Q15/16 3Q14/15 (ppt) 9M15/16 9M14/15 (ppt) Operating Margin 14.0 11.3 2.7 12.9 10.0 2.9 EBITDA Margin 18.0 14.9 3.1 16.9 13.8 3.1 PBT Margin 16.6 14.3 2.3 16.0 12.6 3.4 PATMI Margin 13.7 11.9 1.8 13.3 10.9 2.4 Underlying Net Margin 13.7 11.9 1.8 13.1 10.9 2.2 Ch
Slide 12: Group Segmental Revenue
Group Segmental Revenue $M 3Q15/16 3Q14/15 Change (%) 9M15/16 9M14/15 Change (%) By Business: Food Solutions 251.0 270.2 (7.1) 735.1 800.6 (8.2) Gateway Services 188.9 179.4 5.3 542.1 524.0 3.5 Corporate 1.1 1.1 0.0 3.4 3.5 (2.9) Total 441.0 450.7 (2.2) 1,280.6 1,328.1 (3.6) By Industry: Aviation 37
Slide 13: Group Expenditure
Group Expenditure Favourable/ Favourable/ $M 3Q15/16 3Q14/15 (Unfavourable) 9M15/16 9M14/15 (Unfavourable) Change (%) Change (%) Staff Costs 212.4 200.9 (5.7) 613.3 607.0 (1.0) Cost of Raw Materials 71.3 90.0 20.8 219.9 265.3 17.1 Licence Fees 18.4 20.4 9.8 51.7 59.2 12.7 Depreciation & 17.7 17.1 (3
Slide 14: Associates/JVs Performance by Business
Associates/JVs Performance by Business $M 3Q15/16 3Q14/15 Change (%) 9M15/16 9M14/15 Change (%) PAT 11.6 13.8 (15.9) 36.3 35.0 3.7 Food Solutions 1.5 2.1 (28.6) 6.9 5.3 30.2 Gateway Services 10.1 11.7 (13.7) 29.4 29.7 (1.0) Dividends Received 7.5 43.9 (82.9) 33.6 88.7 (62.1) AISATS, AAT, BAIK, MIC a
Slide 15: Group Balance Sheet
Group Balance Sheet $M As at 31 DEC 15 As at 31 MAR 15 Total Equity 1,541.6 1,517.6 Long-Term Loans 92.6 89.7 Other Long-Term Liabilities 63.6 66.6 Current Liabilities 342.0 345.8 Total Equity & Liabilities 2,039.8 2,019.7 Fixed Assets & Investment Properties 534.6 558.7 Associated Companies & JVs 5
Slide 16: Group Cash Flow Statement
Group Cash Flow Statement $M 9M15/16 9M14/15 Difference Net Cash From Operating Activities 126.3 128.6 (2.3) Net Cash From Investing Activities 6.8 76.3 (69.5) Net Cash Used In Financing Activities (146.5) (180.9) 34.4 Net (Decrease) / Increase In Cash & Cash Equivalents (13.4) 24.0 (37.4) Cash & Ca
Slide 17: Outlook
Outlook 17
Slide 18: Outlook
Outlook Economic uncertainty and low consumer confidence across most of Asia suggest that the challenging operating environment will continue. However, our focus on raising productivity by adopting new technologies and driving economies of scale has prepared us well for these headwinds. The long-ter
Slide 19: END
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